2. 1. INTRODUCATION
2. HISTORY OF BLOCK CHAIN
3. STRUCTURE
4. DECENTRALISED NETWORK
5. SMART CONTRACT
6. TYPES
7. FUTURE SCOPE
8. ADVANTAGES OF
BLOCKCHAIN
9. REFERENCES
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CONTENTS
3. ▪ Blockchain is the backbone Technology of Digital
CryptoCurrency BitCoin. The blockchain is a distributed
database of records of all transactions or digital event that have
been executed and shared among participating parties. Each
transaction verified by the majority of participants of the
system. It contains every single record of each transaction.
BitCoin is the most popular cryptocurrency an example of the
blockchain.
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1: INTRODUCATION
4. ▪ The first work on a cryptographically secured chain of blocks was
described in 1991 by Stuart Haber and W. Scott Stornetta. They
wanted to implement a system where document timestamps could
not be tampered with. In 1992, Bayer, Haber and Stornetta
incorporated Merkle trees to the design, which improved its
efficiency by allowing several document certificates to be collected
into one block.The first blockchain was conceptualised by a
person (or group of people) known as Satoshi Nakamoto in 2008.
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2: HISTORY OF BLOCK CHAIN
5. A blockchain is a decentralised, distributed, and oftentimes
public, digital ledger that is used to record transactions across
many computers so that any involved record cannot be altered
retroactively, without the alteration of all subsequent blocks. This
allows the participants to verify and audit transactions
independently and relatively inexpensively. A blockchain
database is managed autonomously using a peer-to-peer
network and a distributed time stamping server.
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3. STRUCTURE
6. ▪ There is no Central Server or System
which keeps the data of Blockchain.
The data is distributed over Millions
of Computers around the world which
are connected with the Blockchain.
This system allows Notarisation of
Data as it is present on every Node
and is publicly verifiable.
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Decentralised Network
7. Databases are distributed (DDBMS) when the
storage devices are not all attached to a common
processing unit such as the CPU, but are spread
across a network. With the development of the
internet, businesses needed solutions that could
process huge amounts of structured & unstructured
data, and that could scale across networks. DDBMS
use consensus mechanisms to ensure fault-tolerant
communications, and provide concurrency control
through locking and/or time-stamping mechanisms.
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Distributed database
8. ▪ You must be aware of BitTorrent and Tor. Both of these
are built on peer to peer network design. A peer to peer
network is a distributed application architecture that
consists of computing devices connected to each other,
without a central server.
▪ In centralised networks, the security is dependent on a
single entity. If that central server is attacked, the
security of the overall network is compromised. But a
peer to peer network is more secure as there is no
single point of failure.
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Peer to Peer Network
10. Most cryptocurrencies use blockchain
technology to record transactions. For
example, the bitcoin network and
Ethereum network are both based on
blockchain. On 8 May 2018 Facebook
confirmed that it would open a new
blockchain group which would be headed
by David Marcus, who previously was in
charge of Messenger. Facebook's planned
cryptocurrency platform, Libra, was
formally announced on June 18, 2019.
4.1. Cryptocurrency
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11. Blockchain-based smart contracts are
proposed contracts that can be partially or fully
executed or enforced without human
interaction. One of the main objectives of a
smart contract is automated escrow. An IMF
staff discussion reported that smart contracts
based on blockchain technology might reduce
moral hazards and optimise the use of
contracts in general. But "no viable smart
contract systems have yet emerged." Due to
the lack of widespread use their legal status is
unclear.
4.2. Smart contracts
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12. Major portions of the financial industry are
implementing distributed ledgers for use in
banking, and according to a September 2016
IBM study, this is occurring faster than
expected.Banks are interested in this
technology because it has potential to speed
up back office settlement systems.Banks such
as UBS are opening new research labs
dedicated to blockchain technology in order to
explore how blockchain can be used in
financial services to increase efficiency and
reduce costs.
4.3. Financial services
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13. A blockchain game CryptoKitties,
launched in November 2017. The game
made headlines in December 2017 when
a crypto-kitty character - an in-game
virtual pet - was sold for more than
US$100,000. CryptoKitties illustrated
scalability problems for games on
Ethereum when it created significant
congestion on the Ethereum network with
about 30% of all Ethereum transactions
being for the game.
4.4. Video games
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14. There are a number of efforts and industry
organisations working to employ blockchains
in supply chain logistics and supply chain
management.
The Blockchain in Transport Alliance (BiTA)
works to develop open standards for supply
chains.
Ever ledger is one of the inaugural clients of
IBM's blockchain-based tracking service.
4.5. Supply chain
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16. A public blockchain has absolutely no
access restrictions. Anyone with an
Internet connection can send transactions
to it as well as become a validator (i.e.,
participate in the execution of a
consensus protocol). Usually, such
networks offer economic incentives for
those who secure them and utilise some
type of a Proof of Stake or Proof of Work
algorithm.
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5.1. Public blockchains
17. A private blockchain is permissions. One
cannot join it unless invited by the
network administrators. Participant and
validator access is restricted.
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5.2. Private blockchains
18. Hybrid blockchains in also know as Consortium
Blockchain. A hybrid blockchain has a combination of
centralised and decentralised features. The exact
workings of the chain can vary based on which
portions of centralisation decentralisation are used.
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5.3. Hybrid blockchains
19. The future of Blockchain in Finance Industry :
Blockchain technology has a great future
worldwide. An incredible scope of Blockchain
technology has been observed in the financial
field. The financial organisations were not able to
sufficiently handle the heavy workload after
demonetisation and thus brought out the
problems of
having a centralised specialist for handling the
financial transactions.
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6. FUTURE SCOPE
20. Presently, digital advertising faces a lot of challenges
like domain fraud, bot traffic, lack of transparency and
long payment models, due to the issue like incentives
are not affiliated. Because of this the promoters and
publishers feel they are dropping the deal. Blockchain
has provided a solution to carry transparency to the
supply chain as it fetches trust in a trust-less
environment. Blockchain allows right companies to
succeed, by decreasing the number of bad players in
the supply chain. Publishers can also gather a vast
percentage of the total advertisement dollars arriving
the ecosystem.
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6.1. Blockchain in Digital Advertising
21. Though the blockchain is a public ledger, the
data is verified and encrypted using
innovative in cryptography technology. In this
manner, the information or data is less likely
to be attacked or altered without
authorisation.
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6.2. Cyber Security
22. With the help of Blockchain technology, basically, it is
possible to impact a varied range of processes and
techniques. It eliminates the need of trusted third party
in the transactions. Well most prominent organisations
in the world exist today to function as a trusted third
party, for instance, SWIFT, and the Depository Trust
Cleaning Company.Corporate chances flourish for
companies that can build applied Blockchain
technologies aiming for particular transactions, like the
mortgage industry. The existing mortgages needed a
complicated web of title searches, title insurance, and
uncountable minor transaction fees which are required
to keep the system running.
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6.3. Remove the requirement of the third party
23. It is confirmed that the paper money at its last phase,
but it is also found that the authorised currency is
facing a severe competition by cryptocurrencies. In
2017, it is observed that the price of Bitcoin has
flown which was never seen by any single service or
money all around the world. The currency is still one
of the most appreciated properties available in the
market, and the nation took notice, due to the price of
Bitcoin is denied by the basic idea of demand and
supply.
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6.4. Government will provide their digital currencies
24. The data on a centralised server is
exposed to hacking, loss of data, or
human error. With the help of blockchain
technology, it is possible to make the
cloud storage more protected and robust
against hacking.
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6.5. Blockchain in cloud storage
25. • The blockchain technology allows for verification without having to be
dependent on third-parties.
• The data structure in a blockchain is append-only. So, the data cannot
be altered or deleted.
• It uses protected cryptography to secure the data ledgers. Also, the
current ledger is dependent on its adjacent completed block to complete
the cryptography process.
• All the transactions and data are attached to the block after the process
of maximum trust verification. There is a consensus of all the ledger
participants on what is to be recorded in the block.
• The transactions are recorded in chronological order. Thus, all the
blocks in the blockchain are time stamped.
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7. Advantages Of Blockchain For Businesses
26. • The ledger is distributed across every single node in the
blockchain who are the participants. So, it is distributed.
• The transactions stored in the blocks are contained in millions
of computers participating in the chain. Hence it is
decentralised. There is no possibility that the data if lost
cannot be recovered.
• The transactions that take place are transparent. The
individuals who are provided authority can view the
transaction.
• The origin of any ledger can be tracked along the chain to its
point of origin.
• Since various consensus protocols are needed to validate the
entry, it removes the risk of duplicate entry or fraud.
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